U.S. home builder sentiment hits two-year low in June - NAHB

Applied Energetics

15/06/2022 15:00

WASHINGTON, June 15 (Reuters) - Confidence among U.S.
single-family homebuilders dropped to a two-year low in June as
high inflation and rising mortgage rates reduced affordability
for entry-level and first-time buyers, a survey showed on
Wednesday.
    The National Association of Home Builders/Wells Fargo
Housing Market index fell two points to 67 this month, the
lowest reading since June 2020. It was the sixth straight
monthly decline in the index. A reading above 50 indicates that
more builders view conditions as good rather than poor.
    "The entry-level market has been particularly affected by
declines for housing affordability and builders are adopting a
more cautious stance as demand softens with higher mortgage
rates," said NAHB Chairman Jerry Konter. "Government officials
need to enact policies that will support the supply-side of the
housing market as costs continue to climb."
    The survey's measure of current sales conditions slipped one
point to 77. Its gauge of sales expectations over the next six
months dropped two points to 61. 
    The component measuring traffic of prospective buyers fell
five points to 48, marking the first time this gauge has fallen
below the breakeven level of 50 since June 2020. 

 (Reporting by Lucia Mutikani; Editing by Chizu Nomiyama)
 ((Lucia.Mutikani@thomsonreuters.com.net
rm://lucia.mutikani.thomsonreuters.com@reuters.net/))